European natural gas prices climbed above €94/MWh on Friday, extending their rebound from a two-week low amid persistent supply concerns. While traders remain hopeful of a diplomatic resolution to the US-Iran war, an immediate deal remains uncertain, with key disagreements between the two sides still unresolved. Continued attacks on vessels transiting the Strait of Hormuz have also heightened concerns over Gulf LNG shipments, with the conflict disrupting nearly a fifth of global LNG supply. Europe’s energy balance remains tight ahead of winter, with EU gas storage at around 74%, well below the five-year seasonal average of 90%, while Germany’s reserves have fallen below 61%. Colder weather, coupled with low wind and solar generation, has prompted early withdrawals from storage, while reduced Norwegian pipeline flows due to outages have added to supply concerns. Despite Friday’s gains, prices are on track to drop by 9% this week, their first weekly decline in six weeks.